Essentially all major stores that operate commercially in the United States today buy and sell merchandise on a “price basis”. That is, all other things being equal, the purchasing operations of the store look to buy the merchandise that they sell at the lowest possible price. This method of purchasing merchandise allows the store to have larger profit margins, while also passing on lower prices onto its customers. Under this type of strategy, the store can remain competitive and, of course, commercially viable. Although this priced-based method of buying and selling merchandise can be beneficial to the consumer from the standpoint of providing economic cost savings at the point of purchase, it nonetheless does present other drawbacks.
Central to these drawbacks is that a priced-based purchasing strategy neglects other factors that are important to many consumers. In today's global economy, merchandise can be manufactured in locations far from the point-of-sale to the consumer. Many products that are presently sold in the United States are made, for example, in China. When the merchandise is made on the other side of the world, the consumer has little or no familiarity with the manufacturer or any of its employees. The consumers therefore may have difficulty in knowing whether they are buying merchandise from a reputable manufacturer that treats its employees fairly. Consumers also cannot be certain whether the manufacturer is respecting environmental and intellectual property laws or whether such laws reside in the country-of-origin on a sound, fair, and enforceable foundation. The merchandise could be made in a country that does not provide adequate protection for patents and copyrights or that does not fairly engage in trade with the country in which the merchandise is sold to consumers. The merchandise that is offered for sale could be known as “pirated” merchandise. Further, the value of the currency in the nation of manufacture also could be pegged at a low value relative to the currency in the nation in which the goods are sold, making the products seem inexpensive to the purchasers. Additionally, if the manufacturer negligently or intentionally makes a defective product that harms the consumer, the consumer may not have sufficient legal recourse against the manufacturer to receive adequate compensation. There also are substantial fossil fuel resource requirements, which are needed to ship merchandise from far-off manufacturing locations to local stores. Consumer concerns regarding conservation and the published effects of excessive greenhouse gases on global warming are neglected when merchandise is purchased on a price basis. Finally, a sizable portion of a consumer's money becomes transferred to entities and persons located in far-away places where the money spent may not come back to benefit the purchaser. The local community can suffer from sizable losses in tax revenue when manufacturing jobs are located elsewhere. If, however, a person can buy a locally manufactured product, the money spent has greater tendency to stay in the local economy, providing jobs and other benefits to the community. Research and development (R&D) efforts also tend to maintain a close tie to manufacturing, and thus when manufacturing operations are displaced, R&D jobs may also follow.
The United States Department of Labor, Bureau of Labor Statistics (BLS) defines the job of a firm's “purchaser” as one who “makes up a key component of a firm's supply chain.” Purchasing professionals attempt to get the best deal for their company, meaning the highest quality merchandise and services at the lowest possible cost. In so doing, the BLS states that “[p]urchasing professionals consider price, quality, availability, reliability, and technical support when choosing suppliers and merchandise.” The BLS further indicates that “[i]n order to accomplish these tasks successfully, purchasing managers, buyers, and purchasing agents study sales records and inventory levels of current stock, identify foreign and domestic suppliers, and keep abreast of changes affecting both the supply of, and demand for, needed products and materials.” One particular type of purchaser is described as a “wholesale and retail buyer”. This type of purchaser buys merchandise, such as clothing or electronics, for resale. In regard to wholesale and retail purchasers, the BLS goes into further detail:                Wholesale and retail buyers are an integral part of a complex system of distribution and merchandising that caters to the vast array of consumer needs and desires. Wholesale buyers purchase merchandise directly from manufacturers or from other wholesale firms for resale to retail firms, commercial establishments, institutions, and other organizations. In retail firms, buyers purchase merchandise from wholesale firms or directly from manufacturers for resale to the public. Buyers largely determine which products their establishment will sell. Therefore, it is essential that they have the ability to predict what will appeal to consumers. They must constantly stay informed of the latest trends, because failure to do so could jeopardize profits and the reputation of their company. They keep track of inventories and sales levels through computer software that is linked to the store's cash registers. Buyers also follow ads in newspapers and other media to check competitors' sales activities, and they watch general economic conditions to anticipate consumer buying patterns. Buyers working for large and medium-sized firms usually specialize in acquiring one or two lines of merchandise, whereas buyers working for small stores may purchase the establishment's complete inventory.Although the BLS describes much about what a wholesale and retail buyer considers before making purchases for the firm, nothing is stated about considering point-of-origin as a factor in making purchasing decisions for retail firms. This is particularly noteworthy in that the BLS states that these “[firm] [b]uyers stay in constant contact with store and department managers to find out what products are selling well and which items the customers are demanding to be added to the product line.” See http://stats.bls.gov/oco/ocos023.htm. Point-of-origin of manufacture, albeit important for the reasons stated above, is not mentioned by the United States Department of Labor as being a factor that is taken into consideration by the professionals who make purchases for stores operating in the United States.        